Exciting News - Sec Resubmission

[AriLea]

After 8 years of following these guys, I feel the same way. It's getting to the point where the anticipated production schedule is to far out and the 15 month schedule doesn't even start until after the SEC filing is approved. Hell, I'll be a great grandfather by the time Elio makes it to market. aghhhhhhhhhhhhhhh! aghhhhhhhhhhhhhhh!

I suppose that one of the biggest differences for me in this. It's more about my grandchildren, and yours, than myself.

 

[AriLea]

The reservations are suppose to be filled first which I estimate will take five to six months. What are the open stores going to do during this time? They can not deliver product until the reservations are filled. Are they going to take more reservations and tell people when it is time to place their actual order? Is their purpose to "advertise" during this time? Will our vehicles be at these stores for us to pick up? What is the stores purpose during this time and what will they be doing?
A store that can not sell is not really a store. Elio Motors is being "innovative" once again.

I'm pretty sure EM is expecting pre-order reservations to eventually exceed production for the whole first year. So yes, by default, it's a showroom for reservations.

 

[RUCRAYZE]

So funny, I'd often dreamed of Elios being sold in pair with large expensive cars, say like a huge 4WD truck with the Elio as an assessor.
And Jerome had mentioned that to me as one of the possible distributor outlets in states that don't have Elio Stores in them. This is something the dealers themselves could decide to do, and indeed, Elio Motors has had some inquiries about that at fleet sales.
(Jerome should know, if you don't want me discussing it, let know )[/QUOTE

Wholey smokes. Is Detroit a easy, hard or average effort to sell? Arizona would have been a better mix, more comparable to the whole country, or am I wrong? In any case 24% of 200million drivers in the us, minus 30% who are one of two that are married, that is, is ah, 33.4 million out the gate. That's 133years to fill that demand. To offset the uncertainty, some of the non-takers could possibly need a car later and re-consider it in such a population.

133 years??? even moving numbers around that's gotta be the silliest post this year!! do you really think there will still be a line at year 132, if it was humor, then I apologize.
As we all know if after E's go into production,, the second year other models from other manufacturers will be available.
Just look at who's selling hybrids, electrics, high milage cars and trucks. My joke-how long will it be until Ferrari has an Electric?? I laugh my a+s- off when I see a Porsche hybrid.

 

[AriLea]

133 years??? even moving numbers around that's gotta be the silliest post this year!! do you really think there will still be a line at year 132, if it was humor, then I apologize.
As we all know if after E's go into production,, the second year other models from other manufacturers will be available.
Just look at who's selling hybrids, electrics, high milage cars and trucks. My joke-how long will it be until Ferrari has an Electric?? I laugh my a+s- off when I see a Porsche hybrid.

Hey, no problem, no offence, but yes that's what the 24% suggests. It's math, no joke. Yes, I do think that fact is funny.

Yes of course, there will be a line, and then competition, very soon. It's in the SEC submission.

You have to understand the numbers in todays' world. Look, Smart Cars sold 10k of those for four years before I even saw one of them on the road. It's a big world.

 

[Sethodine]

Hey, no problem, no offence, but yes that's what the 24% suggests. It's math, no joke.

If sales were that good, and if the rest of the industry didn't jump onto the band wagon, then you could bet Elio would open other manufactories and ramp up production to fill demand sooner.

 

[Terrence]

Buy a cheap used car then sell it before the Elio launches and buy an Elio.

I purchased new a 1992 Honda accord which I drove for 12 yrs and put on 230,000 miles. I then purchased new, a 2003 Honda accord, now 12 years old, with 201,000 miles. I have planned on keeping this Honda for 300-400,000 miles. I am all in on an Elio . The Elio will become my primary vehicle and Honda secondary. HOORAH FOR THE ELIO <> 84 mpg, $6,800.00, roll cage, air bags, 1,240 lbs, tandem (aerodynamic), 200,000 mile capable motor (new design 2015), Hyd valve lifters-no need to adj, the Elio being categorized with motorcycles keeps additional costs down, one door, three wheels/tires, standard stereo-power windows-power door locks-front wheel drive, Hoorah I am in line waiting with all my Elio to be owners!
I Salute and thank you Paul Elio <> plus a grand thanks to Team Elio

 

[Ekh]

Gems I saw:

Where the typical small car would require 1,000 to 1,500 components for vehicle assembly, the Elio can be produced
with only 270 components.

If they sell all expected shares, the "Working Capital" is about $5.4 million, and a portion of that goes to officers' salaries. [Good work if you can get it.]

Whether a minimum # of shares is sold or a max # of shares is sold, the $7.4 mill planned for prototype building and testing is the same.

The % of off-the-shelf or modified off-the-shelf parts is down to 65%. Seems like that number was higher. Not a big deal.

Computer-aided design models or physical hardware are in place for over 90% of all non-off-the-shelf components. Once the components are available, the actual builds [of the 25 prototypes] will likely take 4 to 6 weeks.

P. 17 shows a listing of what's planned for the 25 prototypes and how many vehicles will be used for each type of test.

For reservations, the avg deposit received is $419, with 94% of the deposits being all-in. At end of Sept 2015, total reservation $ is $19.4 mill.

Current numbers show that in the U.S., 120 million of 258 million vehicles are 6-14 yrs old. [I didn't realize that a 2009 vehicle is a "clunker", but there ya go.]

Here's the selling point that I can't seem to remember: if one were to finance the Elio over 6 yrs, and your previous vehicle got 18 mpg or less, the savings in gas costs pays for the new Elio.

A survey in Detroit of 2000 people who watched a video on the Elio, showed almost 24% of them were very likely or extremely likely to buy an Elio.

Retail stores are expected to have about 4000 sq. ft of space. [That's about 50 ft x 80 ft.]

A detailed 47-wk launch plan is in place, ... 24 weeks of pre-production activities, 10 weeks of manufacturing validation and training, and 12 weeks of production that ramps up to full production (with one shift; 11 more weeks to ramp up the 2nd shift).

It is possible that vehicle testing in the next 12 months may uncover technical issues that may introduce a further delay. (ugh)

There are 19 states that have an autocycle defined by law.

At end of Sept 2015, 17 total FT and PT employees.

They have offices in Phoenix and Mesa, AZ.

If I understand the blather about the plant in Shreveport and the rent charges, Elio Motors will need to pay rent in Aug 2016. Also, EM does not anticipate they will be in production until the end of 2016 at the earliest. [So another extension on rent will be needed, no?]

In Jan 2016, EM has to start making payments on a $23 mill loan from Racer Trust for the equipment purchase in the plant. Other loans and payments are detailed on p.27.

EM believes funding for the $240 mill will come from short-term and long-term sources, traditional sources (not discussed in the document) such as venture debt arrangements and capital leasing on equipment.

Sales of excess equipment from the plant is up to $3.5 mill. [First time I've heard of a number]

[gets us up to p. 30, lol! ]

AS do some others, I find the very tight schedule for ramp-up totally at odds with Elio's track record so far. Look for further delays, even if things run smoothly. Damn.

Just thought it might give an insight into the process. To much work tho. Maybe just the major differences?

(Hopefully) attached are my comparisons of the two SEC filings. Preliminary_Offering_Circular_08-28-15.pdf is the original document. Where content in it was removed from the revised document, I've marked it in red. Where the content has changed (values, dates) I've marked it in Blue. Preliminary_Offering_Circular_RevA_10-21-15.pdf is the new, revised document. Content in it that wasn't in the original is indicated with Green text. Again. content that changed is in Blue. These are based on the files available on the SEC site, not StartEngine.

I had to import the PDFs into LibreOffice Draw, where each page became a 'slide', then export them back to PDF after editing. Not a pretty process. A side by side comparison would be terrific, but I'm not sure how to generate that. The pagination changes significantly between the two documents. I had the two documents open at the same time, side by side, but I have two monitors on my computer.

I won't swear 100% accuracy. A lot of the checks were looking at the words at the beginning and end of each line in a paragraph, assuming things were the same if they didn't change. I tried to verify numbers, but I won't swear I didn't miss some.

Hope this helps someone.

You're a hero.

 

[Ekh]

The purpose of CAFE credits is threefold. 1. punish manufacturers for making poor economy vehicles and 2. reward those who DO make efficient cars. and 3. Encourage people to stop driving inefficient cars as much.

Giving Elio CAFE credits does all three. It encourages people to drive to work at 84MPG rather than 16MPG (Me), it'll help Elio be profitable and continue producing vehicles, it'll probably highlight to other manufacturers there is profit there (they'll get tired of watching some of their profits go to Elio), and Lastly, it'll be better for our roads... lighter is better... My truck weighs in right at 10,000 LBS and when I drive my Elio to work, I'll be taking 8,000+ pounds of punishment off the roads.

So, I hope the CAFE credits work out for Elio and I think that letting Elio earn CAFE credits (it is reasonable to think someone would drive it to work rather than their "other" vehicle where it isn't as likely that a CanAm Spider rider would ride all year to work) fits in with the spirit of intent.

How do CAFE standards differ from CARB standards, which are also mentioned in the SEC filing?

 

[AriLea]

I found these other points interesting. (I do hate the 2017 start date, but oh well.)

If all 2,090,000 shares have not been sold during the initial seven-day period shares will be offered to the general public.

So they ARE NOT limited to only the population from SE 'expressions'. That sounds good, and means there is still a reason to 'express' for a place in line.

Additionally, the estimated $7,600 retail price is based on a 125,000 annual production volume and a BOM cost target of $5,654 that management expects to achieve at start of production. At 250,000 annual sales, we believe we can achieve the target $6,800 retail price due to lowered BOM costs (a target BOM cost of $5,132) resulting from economies of scale. Our management believes that based on the public response received to date, selling 250,000 vehicles per year at the $6,800 retail price is achievable.

So yea, $7,600 was based on somewhat conservative sales. But the $6,800 price does not have a engineering challenge to meet, just a business and marketing one.

 

[Johnny Acree]

So funny, I'd often dreamed of Elios being sold in pair with large expensive cars, say like a huge 4WD truck with the Elio as an assessor.
And Jerome had mentioned that to me as one of the possible distributor outlets in states that don't have Elio Stores in them. This is something the dealers themselves could decide to do, and indeed, Elio Motors has had some inquiries about that at fleet sales.
(Jerome should know, if you don't want me discussing it, let know )

Here is a link to a story about Aston martin, who offered a gussied up Toyota IQ as a tender for their high dollar ride. I also remember seeing a smart as a tender for a MB

http://www.topgear.com/car-news/aston-martin-cygnet-news-aston-martin-cygnet-yep-it’s-iq-2009